Memorandum
REPORT TO:
City Commission
FROM:
Bernie Massey, Customer Service & Billing Supervisor
Laurae Clark, City Treasurer
Melissa Hodnett, Finance Director
SUBJECT:
Resolution for the Annual Assessment for Business Improvement District (BID) for Fiscal Year 2027
MEETING DATE:
September 22, 2026
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Consider the Motion: Adopt Commission Resolution for the Annual Assessment for the Business Improvement District (BID) for Fiscal Year 2027.
STRATEGIC PLAN:
BACKGROUND:
Montana Code Annotated (MCA) Title 7 Chapter 12 Part 11 allows for the creation of business improvement districts that will serve a public use, promote the health, safety, prosperity, security, and general welfare of the inhabitants of the district and of the people of this state, be of special benefit to the property within the boundaries of the district, or aid in tourism, promotion, and marketing within the district.
The Downtown Bozeman Business Improvement District (BID) has a stated goal of ensuring the long-term preservation and vitality of the city's underlying economic, cultural, social, and environmental assets. The BID was originally founded in 2000, expanded in 2006, renewed in 2010, and renewed again in 2020. BID revenues are derived from an annual assessment based on each property's portion of the district's taxable value. The BID is overseen by a board appointed by the City Commission. BID monies support numerous programs including the summer flower baskets, holiday lighting, graffiti removal, and year-round maintenance employees.
As prescribed by MCA 7-12-1132, the Commission was presented on May 12, 2026, with the Downtown Business Improvement District (BID) work plan and budget which proposed $295,000 in assessments to downtown business owners. On June 23, 2026, the City Commission adopted the FY27 budget, consistent with the work plan and budget presented. This Resolution formally levies and assesses the special assessment upon all real property in the business improvement district to defray the estimated cost and expense to be incurred as outlined in the work plan and budget.
UNRESOLVED ISSUES:
None
ALTERNATIVES:
The work plan and budget adopted for the Downtown BID on May 12, 2026, can only be funded by adopting this resolution and making the associated assessments.
FISCAL EFFECTS:
The assessments proposed are consistent with the FY27 adopted budget and the Downtown BID work plan and budget adopted by the Commission on May 12, 2026. The downtown businesses within the business improvement district will be billed by Gallatin County based on their assessed taxable value as it relates to the taxable valuation of the whole district. The assessment rate in said business improvement district shall be set to ensure $295,000 in total is billed.